Question 1

Who currently controls the digital property advertising space?

Accepted Answer

The market is a functional duopoly where REA Group and Domain collectively capture 98% of online classified revenue. REA Group maintains clear leadership with a 69% market share and a traffic volume 1.7 times larger than Domain.

Question 2

Is there any remaining opportunity in print media for property?

Accepted Answer

The transition to digital is nearly absolute, with print advertising spend forecast to collapse to just 4.6% of the total market by 2022. Traditional publishers must pivot immediately as the broader Australian online advertising market has already scaled to A$8.3 billion.

Question 3

Are new low-cost competitors actually a threat to the status quo?

Accepted Answer

Fixed-fee disruptors like Purple Bricks are materially impacting the sector, having already saved customers A$16 million in commissions. This pressure is forcing the dominant portals to diversify into mortgage broking to secure new revenue streams and defend their market positions.

Question 4

How are broader economic shifts affecting property sales?

Accepted Answer

Market activity is softening despite price growth; while capital city dwelling values rose 9.7% in 2017, actual sales volumes fell by 4.5%. This volatility is compounded by a retreat in foreign investment, with the share of new property sales to overseas buyers dropping from 16% to 10%.

Property Advertising Market Outlook: Technology as a disrupting and differentiating factor

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